CPAY Straddle Strategy
CPAY (Corpay, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024.
CPAY (Corpay, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $21.65B, a trailing P/E of 19.01, a beta of 0.82 versus the broader market, a 52-week range of 252.84-361.99, average daily share volume of 637K, a public-listing history dating back to 2010, approximately 11K full-time employees. These structural characteristics shape how CPAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places CPAY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a straddle on CPAY?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current CPAY snapshot
As of May 15, 2026, spot at $329.01, ATM IV 34.70%, IV rank 34.06%, expected move 9.95%. The straddle on CPAY below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on CPAY specifically: CPAY IV at 34.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.95% (roughly $32.73 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPAY should anchor to the underlying notional of $329.01 per share and to the trader's directional view on CPAY stock.
CPAY straddle setup
The CPAY straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CPAY near $329.01, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPAY chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CPAY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $330.00 | $14.30 |
| Buy 1 | Put | $330.00 | $14.00 |
CPAY straddle risk and reward
- Net Premium / Debit
- -$2,830.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$2,763.17
- Breakeven(s)
- $301.70, $358.30
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CPAY straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CPAY. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$30,169.00 |
| $72.75 | -77.9% | +$22,894.52 |
| $145.50 | -55.8% | +$15,620.04 |
| $218.24 | -33.7% | +$8,345.55 |
| $290.99 | -11.6% | +$1,071.07 |
| $363.73 | +10.6% | +$543.41 |
| $436.48 | +32.7% | +$7,817.89 |
| $509.22 | +54.8% | +$15,092.38 |
| $581.97 | +76.9% | +$22,366.86 |
| $654.71 | +99.0% | +$29,641.34 |
When traders use straddle on CPAY
Straddles on CPAY are pure-volatility plays that profit from large moves in either direction; traders typically buy CPAY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CPAY thesis for this straddle
The market-implied 1-standard-deviation range for CPAY extends from approximately $296.28 on the downside to $361.74 on the upside. A CPAY long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CPAY IV rank near 34.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CPAY should anchor more to the directional view and the expected-move geometry. As a Technology name, CPAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPAY-specific events.
CPAY straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CPAY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPAY alongside the broader basket even when CPAY-specific fundamentals are unchanged. Always rebuild the position from current CPAY chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CPAY?
- A straddle on CPAY is the straddle strategy applied to CPAY (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With CPAY stock trading near $329.01, the strikes shown on this page are snapped to the nearest listed CPAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPAY straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CPAY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 34.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,763.17 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CPAY straddle?
- The breakeven for the CPAY straddle priced on this page is roughly $301.70 and $358.30 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CPAY market-implied 1-standard-deviation expected move is approximately 9.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CPAY?
- Straddles on CPAY are pure-volatility plays that profit from large moves in either direction; traders typically buy CPAY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CPAY implied volatility affect this straddle?
- CPAY ATM IV is at 34.70% with IV rank near 34.06%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.